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Audi considers new U.S. factory to meet EV tax credit rules

Picture of Chris Teague

Chris Teague


Recently passed inflation reduction legislation contains provisions for an updated electric vehicle tax credit, but some automakers are scrambling to make their vehicles eligible under the new requirements. To qualify, one of the major stipulations in the bill is that an EV’s final assembly location be in North America. Audi is one automaker with a catalog full of non-eligible vehicles, but a recent report may change that situation.


Audi’s products are common here, but the company does not yet have a manufacturing presence in the United States. As it looks to shift more of its efforts toward electrification, Audi has to navigate the new rules for EV tax credits to keep pace with its competition. That could mean a new production facility and other physical investments. As part of the Volkswagen Group, Audi is tied to its vision of an electric future, so there is a considerable motivation for the investment.

Audi’s head of technical development, Oliver Hoffmann, told Automotive News that the new rules impact the automaker’s North American operations. He notes that the company is looking at all the opportunities surrounding EVs and says that Audi may lean on its corporate parent, Volkswagen, as things progress. As for meeting the EV tax credit requirements, Hoffman said that Audi is “looking forward to how we can meet these requirements.”


Hoffmann told Auto News that the decision to expand Audi’s production presence could come as early as the beginning of 2023. The automaker has new EVs on the market now and a slate of incredibly compelling electric concepts, so the future of EVs in North America looks brighter with Audi in it.

What this means for you

Audi’s potential decision to start building EVs here will have a significant impact on Americans’ ability to buy and afford the company’s vehicles in the future. Qualifying for a tax credit makes a car much more attractive from a cost standpoint, so Audi buyers must be able to take advantage of those savings, or they’ll move on to a brand where they can. Building vehicles here and keeping as much of the supply local as possible also helps shore up sagging supply chains and may help prevent component and vehicle shortages down the line.


If you’re not looking for an Audi, it’s important to note that it is one of several automakers looking to expand their presence in the U.S. to meet the new tax credit rules. Kia, Mercedes-Benz, Volkswagen, BMW, and others are looking to increase their manufacturing capabilities here. That’s good for jobs and the economy, but it also means that there will soon be several great new EVs that qualify for the rules.

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